5 Things Not to Do with Your Stimulus Checks

I'm not a financial advisor. I don't personally dabble in the stock market. My retirement savings funnel into specified funds and I seldom make changes. I do occasionally listen to financial guru Dave Ramsey and have read his book Financial Peace, but that's the extent of my wealth building knowledge. However, I do know there are certain things you shouldn't do with your stimulus checks.

Because of the pandemic and the financial hardships experienced by many Americans, the Federal Government has issued stimulus checks to a majority of citizens in our Country. One purpose of these funds is to infuse money into the economy and help businesses around America to draw back from the brink of collapse. Another purpose is to help people struggling to pay bills and put food on the table. Undoubtedly, some have treated their stimulus checks like Publisher's Clearing House Sweepstakes and have disregarded the intent of the stimulus. In case you're wavering in how to use these extra funds, here are some financial pitfalls to avoid.

1. Don't blow a stimulus check on the lottery. For instance, though we get hyped up when Powerball skyrockets to 850 million dollars, the odds of winning are approximately 1 in 300 million. To put this in perspective, you have a:

One in 2,320,000 chance of being killed by lightning

One in 3,441,325 chance of dying after coming into contact with a venomous animal or plant

One in 10 million chance of being struck by falling airplane parts. This one makes me a little nervous to spend time outdoors. So much for "fly the friendly skies."

So, obviously blowing your stimulus check on Powerball isn't the wisest decision.

2. Don't blow your stimulus check on llamas. The llama market boomed from the 1980's to the early 2000's. But in 2007, the llama market went bust just shortly after the housing market crash. The only correlation I see is that those who invested in llamas decided that housing issues needed more attention than a luxury fiber producing pack animal. I'm not llama phobic. If you've got the money to blow, a llama might make a great pet. There is only one documented case of a human being being killed by a llama. That's pretty impressive when you consider man's best friend kills around 40 people per year. So, if you want a llama, buy one. Just not with your stimulus check.

3. Don't blow your stimulus checks on extravagant vacations. My wife and I have 6 kids. That number of children resulted in a substantial third round stimulus check. When the funds dropped to our checking account, it was tempting to consider a dream vacation, but that memorable trip won't straighten my son's teeth, install a new roof, or pay insurance on four vehicles. The Disney trademarked slogan is "Where Dreams Come True." Currently, my dreams are to pay my house payment and buy toilet paper. My dreams aren't going to come true spending my stimulus check at Disneyland. In fact, if I made that decision, my world would become a much smaller world after all.

4. Don't blow your stimulus check on a superhero suit. In trying times like these, we tend to look for those stronger than ourselves to weather the hardship. Buying Mandalorian Armor or an Iron Man Suit might seem fortifying during this global pandemic, but it will do little more than draw snickers and stares from the general public. I guess one benefit would be the mask is much more cool than an N-95, but still, it's just not a wise expenditure.

5. Don't blow your stimulus checks on drugs. This one by far is the most serious bit of advice. After the first round of stimulus checks, a Kentucky woman spent her funds on fentanyl. While sleeping off the dose she had taken, her two year old son found and ingested the synthetic opioid. The youngster died. According to research, 24 million people used their first stimulus check to purchase alcohol and drugs. Millions of people looking for a means to escape the fear and isolation of a global pandemic, spent money to drown their sorrows. Sadly, we've seen a rise in overdoses across the Country and future stimulus checks may lead to more hospitalizations and deaths.

So, I hope you find this advice helpful. If you find yourself struggling to make wise financial decisions and are just going to blow it anyway, I'll send you my Venmo. We've got about 48 more payments on my son's teeth. But seriously, consider that financial times might get worse. Use the funds to better your family for the long haul, not a one week stay at a Disney Family Resort.